The five best and five worst regions for new-build house prices
New-build flats have become notorious in recent years for their sharp fall in value after the housing bubble burst. Developers were forced to slash prices by up to 70 per cent but many remained empty for months because of a chronic oversupply in some towns and cities.
However, in recent weeks there is evidence that buyers, particularly cash-rich investors, are slowing returning to the market, picking up bargains and reducing the amount of excess stock available. In some areas there is expected to be a shortage of new homes in the coming years, adding to a growing confidence about values. Smartnewhomes.co.uk, the property website, has surveyed the market for new-build houses and flats around the UK. Here are the best and worst performing regions based on price rises over the last month.
The Best
1 South West
Towns and cities across Devon, Somerset, Cornwall and the south west were the worst effected by the slump in property prices, with the price of new-build homes down 30 per cent year-on-year at the end of the 2008. However, last month prices jumped 4.4 per cent to an average price of £216,610, but were still down 4 per cent over the last three months and 1.1 per cent annually. David Bexon, Managing Director of SmartNewHomes.com, said: “The biggest turnaround has occurred in the South West, which was second only to London for annual growth in October – down just 1.1 per cent. It is on a par with London in terms of the decrease in supply, down 70 per cent in the two years from October 2007, which is supporting the current stabilisation of prices in this region.”
2 London
The prices of new-build homes in the Capital have rebounded in the last year as a shortage of homes and an steady stream of buyers push up the value of most types of property. The average new-build home in London is now £446,968, up 4 per cent on last month and 20.2 per cent on this time last year.
3 South East
New-build homes in towns across the South East have climbed by 1.7 per cent last month, but any growth in prices remains weak in the region, including the seaside property hotspot of Brighton & Hove, were down 0.9 per cent over the last three months and 7.8 per cent annually.
4 North West
Prices for new-build homes in the North West are up 1.1 per cent over the last month and 1.6 per cent over the last three months. However, prices remain down 11.1 per cent on a year ago. The average price of a new-build home in the North West is £178,852, according to smartnewhomes.co.uk.
5 North
The North of England has suffered heavy falls in the price of new build homes, particularly city-centre flats, which fell dramatically in price after the housing bubble burst when a glut of homes for sale saw prices cut by up to 70 per cent in some developments. Across the country, new-build apartments are down 15.7 per cent in price, but up 1.5 per cent in the last year. In the North across all types of new-builds, prices were up 0.9 per cent last month but down 10.8 per cent annually.
The Worst
1 East Anglia
Prices for new-build properties in Norwich, Ipswich and across the East Anglia region have slumped 1.3 per cent in the last month, remained static over three months and are down 8.3 per cent over the last year. By comparison, the Nationwide house price index, compared all properties across the UK, recorded a 0.5 per cent price increase in the last month, largely due to a lack of homes for sale on the market.
2 Scotland
Developers in Scotland had hoped for a recovery in prices of new homes as prices rose 6.3 per cent over the last three months. However, last month prices fell 0.5 per cent and are down 2.3 per cent annually.
The price of new-builds in the West Midlands has crashed dramatically in the last year, down 26 per cent year-on-year. Cities such as Coventry and Birmingham have barely seen prices recover, down 0.2 per cent last month and 4.8 per cent in the last three months.
4 Wales
The Welsh have seen prices on new-build properties fall 15.3 per cent in the last year, and 2.5 per cent in the last three months. Prices have managed a rise of only 0.2 per cent in the last month.
5 East Midlands
Leicester, Lincoln and Nottingham, along with the rest of the East Midlands, have seen prices of new-builds creep up only 0.3 per cent in the last month. Annually however, the region is down 8.7 per cent over the last year. This is compared to an annual rise of 2.7 per cent in UK property prices recorded by the Nationwide Building Society.
Source – The Times On-Line
